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Industry
@ Halal | September-October . 2021
Linaco taps growing halal market
Engaging with MATRADE has been helpful for Linaco to seek buyers abroad
BY ALISA AMINUDIN
LINACO Group of Companies aims to tap into the vast potential in the market offers .
Its CEO Yong Kheng Loong said the company catered to the needs of the halal industry by complying with established halal standards . “ We have made it our mission to infuse those standards within our line of products .”
Implementing new and innovative ideas to build Linaco ’ s brand royalty and product engagement was entrusted to Mark Law , the Head of Marketing and Communication .
Linaco is known for their 10 per cent pledge from the net profit for corporate social responsibility since 2014 . Linaco is committed in nation-building through its sustainable business so that their giving can continue impacting and transforming lives of the underserved community in Malaysia .
Linaco believed the global halal market was huge . Yong estimated it at over RM2 trillion given the global market size and Muslim population .
Yong recalled an event back in 1995 when one of their partners in Saudi Arabia stated that coconut did not require halal clarification .
“ For us , it was much more than that . JAKIM ’ s halal standards have always been unique .
“ To us , halal transcends religion . It covers hygiene and environmental elements ,” added Yong , who has been in the industry for several years and understands it quite well .
Linaco was founded by Richard Ling who had spearheaded the company ’ s growth . From its humble beginnings in 1992 , the Linaco Group grew into a respected supplier of coconut-related products , Chinese herbal recipes ( Easy-To-Cook ) and pre-mixed spices , caramelised sugar , flavours and sauces .
Yong pointed out the food & beverage ( F & B ) segment was enormous , accounting for about 60 per cent of the global halal market . In Asia , the percentage is higher due to the larger Muslim population .
“ With Malaysia being a tourism-friendly country , we can attract many Muslims from other parts of the world . We can create awareness about what Malaysia has to offer in the halal business . It would , in turn , boost the Malaysian economy .”
Challenges in halal exports
Yong said all businesses have their challenges and struggle unique to their industry . One of the concerns faced by Linaco was the lack of synchronisation in the industry in different countries .
“ For instance , Indonesia ’ s recognition of halal comes from its MUI ( Majelis Ulama Indonesia ). The Indonesian society believes in their halal authority even though Malaysia ’ s JAKIM is generally recognised .”
Yong saw authorisation by JAKIM was vital in setting up the factories in different regions for Linaco to expand its halal operation .
“ For example , if our source supplied
Yong Kheng Loong
Mark Law
us from the Philippines , we seek JAKIM to audit their plant and certify it as halal although the Philippines has a halal organisation .
“ Also , consumers from different parts of the world who are unfamiliar with the halal process may be reluctant to buy the products . They choose to believe in what is familiar to them ,” added Yong .
A single rejection of products could happen due to manufacturing locations that consumers can read on the label .
To increase product sales , Yong uses labels that can improve a product ’ s optimum halal standard .
Linaco , he said , ensured compliance to the halal standards and international food safety standards of their products . Yong noted a solid QA team worked closely with JAKIM , before their products are shipped out .
“ We ensure these products go through
To us , halal transcends more than just religion . It covers hygiene and environmental elements .” — Yong regular checks , making sure that they follow the rules and regulations and comply with JAKIM ’ s halal standards .“
Coping with the pandemic
Yong said Linaco had also been very strict in complying with the government ’ s SOP since the lockdowns started due to Covid-19 .
“ Most of our employees are working from home . But there are instances when they have to come in . If they need to come to the office , they have to take a swab test to break the chain of infection .”
He also said Linaco ’ s coconut factory went through the same procedure , which has locals and 500 foreign workers .
“ They are reminded to care for their hygiene and safety . We are pushing for vaccinations and hope to get it done by the end of September .”
Yong also said that due to unavoidable external factors , Linaco asked its customers early for leeway to meet the demands for their products during the pandemic .
“ We are doing our best under the circumstances . We conduct virtual online activities with different online tools to communicate with them .”
MATRADE ’ s assistance a huge help
Linaco also released the need to engage with the Malaysia External Trade Development Corporation ( MATRADE ), the national trade promotion agency under the Ministry of International Trade and Industry .
“ MATRADE has been doing a lot of exhibitions in many potential markets . Linaco started to engage with MATRADE in late 1993 as they saw opportunities to promote their products globally .”
MATRADE provides support in the marketing of products and arranging partners to attend the exhibition and business meetings . MATRADE also helps in identifying potential customers and even gets the contacts of other companies for Linaco .
“ Linaco sees MATRADE as a big help for us to reach out to the larger players , especially in the F & B area .”
Mark chipped in that Linaco was leveraging MIHAS to expand its business internationally during this critical time .
“ Due to the pandemic , there are restrictions on travel . So , Linaco identifies potential buyers and provides them with samples .
“ We are also working with MATRADE to identify ways to do a trade mission where we can deliver and display our products . We are trying various options such as hybrid exhibitions to communicate with potential buyers .”